Hims & Hers shares fall 29% after Novo Nordisk semaglutide suit and DOJ referral

Shares of Hims & Hers Health fell about 29% as investors weighed a Novo Nordisk patent lawsuit over compounded semaglutide and a referral of the matter to the Justice Department ^[1].

Simply Wall St reported the stock dropped 29.2% following the suit, which Novo Nordisk filed earlier in February 2026 against the telehealth company over its compounded semaglutide products ^[1]. The decline also came after Hims & Hers launched a low-cost "Compounded Semaglutide Pill" on February 5, 2026, and halted the offering days later under FDA pressure ^[1]. CNBC described the same episode as the company pulling a less expensive oral version of Wegovy after lawsuits from Novo Nordisk and rising regulatory scrutiny ^[2].

The dispute centers on pharmaceutical compounding, which is legal for individualized patient needs, and on whether Hims & Hers' activity crossed into large-scale marketing ^[2]. Novo Nordisk says that because semaglutide is no longer in shortage, compounded versions are not justified ^[2]. Semaglutide is the active ingredient in Ozempic, Wegovy and Rybelsus. Simply Wall St described the conflict as a broad challenge to the company's compounding model, citing allegations of unsafe formulations and deceptive marketing ^[1]. Those are allegations; neither account describes a court ruling on them.

The Justice Department referral raises fresh operational and regulatory questions about the company's growing weight-loss business, according to Simply Wall St ^[1]. The report said the episode put the durability of that business in question and raised the possibility that other offerings, such as lab testing and cancer screening, would have to carry more of the near-term growth ^[1].

Hims & Hers' published narrative projects $3.3 billion in revenue and $261.3 million in earnings by 2028, which would require 18.3% yearly revenue growth and an earnings increase of about $67.7 million from $193.6 million ^[1]. Before the controversy, the most optimistic analysts assumed revenue of about $4.1 billion and earnings of about $331.6 million by 2028 ^[1]. Simply Wall St noted those forecasts leaned on smooth regulatory scaling of GLP-1 and lab compounding, and that the current legal backlash is a reminder of how much compliance risk can change the outlook ^[1].

Why it matters for patients

Compounded semaglutide is not an FDA-approved product. The accounts describe compounding as legal for individualized patient needs rather than for large-scale marketing ^[2]. Whether semaglutide is listed as in shortage matters to that legal line, because Novo Nordisk argues that without a shortage, compounded copies are not justified ^[2].

For patients receiving a compounded version through a telehealth provider, the practical consequence is that product availability and provider offerings can change quickly. Hims & Hers went from launching its compounded pill on February 5 to halting it within days ^[1]. What happens to existing orders or prescriptions has not been disclosed, and neither account says whether the company will continue selling any compounded GLP-1 product.

The referral also leaves open what federal investigators are examining. The reports say the referral raises regulatory questions about the weight-loss business but do not describe its specific scope, targets or possible penalties ^[1][2].

What happens next

No court dates, response deadlines, FDA action timelines or Justice Department decisions have been reported in these accounts ^[1][2]. Nor has Hims & Hers said publicly how the company plans to adjust its weight-loss offerings; the sources say only that the episode has called the durability of that business into question ^[1].